protrader1969

BANKNIFTY for 3rd February

Long
NSE:BANKNIFTY   NIFTY BANK
Nifty had few reasons to fall but why did Banknifty fall so much? In my opinion one reason could be hiking the deposit insurance from 1 lakh to 5 lakhs. Please read this post along with post on Nifty to get complete perspective. I think Banknifty too like Nifty can bounce back tomorrow if Asian markets are not opening too much in negative territory. Banknifty too is out of Bollinger band with RSI at 30.74 on daily chart and hence should undergo some retracement. One significant drawback is that BNF closed way below its 200 DEMA . So for long term, outlook for BNF is negative for sure but just for tomorrow and maybe day after I see some upmove in Banknifty . So one can buy even at these levels if they are there in morning and book profit at around 30300.
All the best. Happy trading.

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